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UPDATE 2-New Pertamina chief to focus on transparency, energy security
March 16, 2017 / 7:30 AM / 9 months ago

UPDATE 2-New Pertamina chief to focus on transparency, energy security

* Aims to boost ties between directors and company’s divisions

* Sets 100-day deadline for “real change”

* Sees decline in oil reserves as a challenge (Adds details on company profits)

By Wilda Asmarini

JAKARTA, March 16 (Reuters) - The new head of Indonesian state energy firm Pertamina said he would focus on improving transparency and communications at the country’s biggest company, while looking to boost energy security.

Elia Massa Manik, who previously headed a state plantations company and a Pertamina subsidiary, was named chief executive on Thursday after the board of commissioners and the state-owned enterprise ministry last month removed the chief executive and his deputy, citing leadership problems.

Pertamina dominates Indonesia’s energy industry with a virtual monopoly on petroleum imports and a commanding lead in retail oil sales, besides owning and operating its main refineries.

The new chief executive was selected for his leadership, and his ability to develop companies, deputy minister Gatot Trihargo told reporters.

Manik said he would work to improve communication and transparency at Pertamina, including between the company’s directors and its different divisions, and would look to make “real changes” in 100 days.

Management needed to be reviewed continuously to ensure accountability on profits and costs, he said.

“I want things to be open. If there is a problem in the processing division, that’s the responsibility of all directors, so all directors (must) know the problem,” Manik said.

Manik added that he would push Pertamina to speed efforts to support Indonesia’s goal of energy independence.

“Our oil reserves continue to decline. This is a challenge.”

Pertamina’s profits surged 122 percent in 2016 to $3.15 billion, finance director Arief Budiman said, partly on the back of improving oil and gas production, fuel sales and refining yields.

This year, the company targets capital expenditure of between $5 billion and $6 billion, Budiman said. (Reporting by Wilda Asmarini; Writing by Fergus Jensen; Editing by Clarence Fernandez)

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